Marijuana stocks remain under pressure (with a few exceptions), as firms struggle for growth and profitability. But this base-building in an environment of bad news will eventually give way to a renewed uptrend, and when it comes, we’ll be ready. Today’s update concerns just a few of our stocks. I’ll send a more complete update next week.
Aurora (ACB) Aurora yesterday announced the departure of its CEO and the laying off of 10% of the company’s workforce in pursuit of profitability, and the good news is that the stock only declined moderately on the news, remaining well above its low of early January. Thus, we can conclude that the worst of the selling is over. HOLD.
Curaleaf Holdings (CURLF) Curaleaf’s stock is one of the strongest in the portfolio, with an uptrend that dates back to November, and there’s good reason for that, fundamentally. Earlier this week the company announced that it had completed the acquisition of Select, making the company the largest cannabis operator in the U.S. in terms of operational and wholesale footprint, with 53 open dispensaries in 14 states, supported by 15 cultivation sites and 24 processing sites. Following the Select closing, Curaleaf will employ over 2,200 people across the United States. BUY.
GrowGeneration (GRWG) Hydroponics garden center operator GRWG looks great, but if you haven’t bought yet, you should probably wait for the next pullback. BUY.
MediPharm Labs (MEDIF) MediPharm is our problem child. I had held on, despite a big loss, mainly because the stock was bottoming at support, but now the stock has clearly fallen through that support and there’s no reason to hold. SELL.